E1 - What are the exceptions to the definition of deposit broker?

Compliance > Deposits > Brokered Deposits
Q:  What are the exceptions to the definition of deposit broker?
 
A:    By statute, as implemented under the FDIC’s regulations, the definition of deposit broker is subject to a list of exceptions.  The FDIC has applied these exceptions in a number of Advisory Opinions.  Based on the list of exceptions, the FDIC does not treat any of the following parties as a deposit broker: 
 
(A)  An insured depository institution, with respect to funds placed with that depository institution;
 
(B)  An employee of an insured depository institution, with respect to funds placed with the employing depository institution;
 
(C)  A trust department of an insured depository institution, if the trust or other fiduciary relationship in question has not been established for the primary purpose of placing funds with insured depository institutions;
 
(D)  The trustee of a pension or other employee benefit plan, with respect to funds of the plan;
  
(E)  A person acting as a plan administrator or an investment adviser in connection with a pension plan or other employee benefit plan provided that person is performing managerial functions with respect to the plan;
 
(F)  The trustee of a testamentary account;
 
(G)  The trustee of an irrevocable trust . . .as long as the trust in question has not been established for the primary purpose of placing funds with insured depository institutions;
 
(H)  A trustee or custodian of a pension or profit-sharing plan qualified under section 401(d) or 403(a) of the Internal Revenue Code of 1986;
 
(I)  An agent or nominee whose primary purpose is not the placement of funds with depository institutions; or
 
(J)  An insured depository institution acting as an intermediary or agent of a U.S. government department or agency for a government sponsored minority or women-owned depository institution deposit program.
 

This can be found in FDIC’s "Identifying, Accepting and Reporting Brokered Deposits Frequently Asked Questions," which can be found at https://www.fdic.gov/news/news/financial/2016/fil16042b.pdf

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